Small Business Marketing Tips for Increasing Profits in a Down Economy

When I watch TV, listen to the radio or happen to flip through a magazine, I like to pay attention to the ads to try to see if they make any sense. I’m one of the weird marketers who thinks the primary purpose of an ad is to increase sales.  If brand awarness is also heightened, that’s a plus.

I’ve had a lot of high paid marketers tell me I’m full of it and that I don’t realize the value of a brand.  To me, the value of a brand is in the sales and profits it generates, not in how many people recognize the name.  I live in Cincinnati, Ohio, USA, which is home to the largest advertiser in the world, Procter and Gamble.

I’ve heard the CEO, A.G. Lafley speak and have read several quotes of his.  When he speaks, he talks about company profitability and sales.  He mentions brands as they contribute to profitability, not how they increase the awareness of the P&G name.  I pay a lot attention to P&G ads.  Every one of them highlights the benefits of using the brand.  Whether it’s whiter teeth, cleaner clothing or cleaner floors, the ads promote what the brand will do for the consumer.  The brand is built and strengthened and more people buy it because it works, not because they’ve heard about it!

The lesson for you, the small business owner/marketer is to realize your ads have one purpose and that is to  generate sales, not awareness.  When the creditors are at your door, you’re paying them with money, not a brand name.  Next time an agency or media rep tells you about brand-building, say “Great!  How will I track sales results from the ad?”

In a slow economy, it’s not time to cut back on marketing or advertising, it’s time to make sure you’re getting a good return on it.  Market smart.  Write good sales copy.  Make your marketing work for you.  Let your competitors build their brands. You can say hello when you are at the bank making deposits resulting from your marketing while they are making withdrawals to pay for theirs.